FACTORS THAT INFLUENCE CUSTOMER’S PREFERENCES: A CASE OF COFFEE SHOP IN GREATER JAKARTA

Abstract

Purpose – The purpose of this study is to find out factors that influence customer’s preferences of coffee shop in jabodetabek area. The variables used in this study to influence customer’s preferences are price, food quality, location, word of mouth, store ambience, store atmosphere, and store layout. Customer’s preference itself becomes the mediating variable that influences customer satisfaction. Design / Methodology / Approach – There are 36 items instrument was distributed to people who have visited a coffee shop at least once in the past three months in jabodetabek area using google form. This study is a quantitative research and it uses non-probability sampling technique with a purposive sampling method. After getting the 285 valid respondents, factor analysis is used to test the validity and reliability while structural equation model is used to test the hypothesis. All tests are using SPSS Statistik and Amos version 22. Findings – the result of this study shows that food quality, word of mouth, store ambience, and store layout significantly influence customer’s preferences and customer’s preferences significantly influence customer satisfaction. v Originality / Value – The research of customer’s preferences still remains scarce in Indonesia and this study contributes to the literature of customer’s preferences at coffee shop. Author believes that this is the first study which applies customer’s preferences of coffee shop in greater Jakarta.